Why Owners Should Have an Inspection Prior to Putting Their Property on the Market
In the overwhelming majority of real estate transactions, the buyer is the party that seeks a home inspection. But a wise homeowner should have his own inspection before putting his property up for sale. For example, a pre-listing inspection will provide the owner with what may be problem areas concerning his property. The owner may then decide to remedy them, rendering the property more attractive, and simultaneously removing a potential bargaining gambit by the buyer to lower the price. Also, from another perspective the report may inform the seller of some of the home’s hidden strengths. (Perhaps, for example, that the roof or boiler is in exceptionally good condition.) This may serve to strengthen the seller’s negotiating position.
In an interview with Realtormag, Steve Waddington, president of the national home inspection services company, WIN Home Inspection, states that pre-listing inspections can boost home sales and help sellers defend their asking price.
According to Widdington, a pre-listing inspection covers “proper functionality of all major systems and components of the house: heating and cooling, electrical, plumbing, roof and structure, siding, doors, and windows, etc. The more comprehensive the inspection is, the more valuable it is likely to be in terms of dollars and cents for the seller when negotiations commence. The seller will better understand the condition of his home prior the buyer’s inspection. The seller will, therefore, not be caught off guard. No one likes unpleasant surprises, especially when they are costly.
Homes that have a pre-listing inspection usually sell faster and have fewer inspection related issues to negotiate. (In other words, lowering your asking price.)
A typical fee for a pre-listing inspection is usually the same as for a buyer’s inspection ($350 - $500) for a qualified inspector who carries E&O insurance. Needless to say, the price can vary based on location, square footage, etc.
While it is normally wise to remedy certain issues uncovered during a pre-inspection, an experienced real estate professional can advise which repairs are smart to remedy before the buyer’s inspection, and which may be better left to the buyer. For example, a matter involving personal taste may best be left for the buyer to solve.
Also, disclosing pre-listing issues gives the buyer the sense that he is dealing with a seller of integrity. This is a very good dynamic to attain during the transaction process. Further, the more information your broker has about the property, the better he will be able to successfully market it. As your broker knows, nothing can replace knowledge – the more the better.
I summation, while a pre-listing inspection may at first glance seem like unnecessary money spent, it is almost always a wise move.